Got income tax refund email? Govt warns it could be a scam, tells taxpayers what to do immediately
Dec 17, 2025
Synopsis
The Income Tax Department has issued a stern warning to citizens. Scammers are sending fake emails and messages claiming tax refunds. These fraudulent communications aim to steal personal and financial data. Taxpayers should only use the official website for tax information. Report suspicious emails immediately to help authorities combat these online scams.
The Income Tax Department on Wednesday issued a strong warning to taxpayers against a fresh wave of fake tax refund emails and messages being circulated to steal personal and financial data.
The department said scammers are sending look-alike emails that closely mimic official communication and trick users into clicking malicious links.
In an official advisory, the tax authority said these fraudulent messages often contain minor spelling errors and fake links designed to appear genuine. Once clicked, they can lead to identity theft, banking fraud and misuse of sensitive taxpayer information.
The department has asked citizens to verify all tax-related information only through its official website, www.incometax.gov.in, and avoid clicking on links received via email, SMS or social media claiming refund updates.
Taxpayers have been advised to immediately report such suspicious emails by forwarding them to
“Report suspicious messages immediately,” the Income Tax Department said, underlining that quick reporting helps authorities trace and stop online tax scams.
The warning comes at a time when phishing attempts tend to rise during the income tax filing and refund season, as fraudsters exploit urgency and confusion among taxpayers. The department reiterated that it never asks for passwords, OTPs, bank details or Aadhaar information through emails or unofficial links.
Taxpayers have also been urged to follow the department’s verified social media handles for real-time updates and official announcements, and to remain cautious of any communication that appears unusual or unverified.
Department uncovers pan-India network of fake claims
In related news, the department intensified action against organised tax fraud involving bogus deductions and exemptions. According to an official statement, investigations uncovered pan-India networks of agents who filed income tax returns on a commission basis by inflating or fabricating deductions under the Income Tax Act.
A large number of fraudulent claims were linked to donations made to Registered Unrecognised Political Parties (RUPPs) and certain charitable institutions, which were allegedly used to unlawfully reduce tax liability and generate illegitimate refunds.
How fake deductions are detected
Sandeep Bhalla, Partner at Dhruva Advisors, said the department uses advanced data analytics and AI-based risk profiling to identify abnormal deduction patterns and intermediary-driven claims. These are cross-verified using third-party data such as banking records, trust filings, AIS and Form 26AS information, PAN-linked databases and transaction trails.
Where discrepancies are found, follow-up action including searches and surveys under Sections 132 and 133A of the Income Tax Act is carried out to gather evidence of bogus donation receipts and routed funds.
[The Economic Times]
